Determinants of a restaurant average meal price: An application of the hedonic pricing model |
| |
Institution: | 1. Department of Economics, University of Bristol, 8 Woodland Road, Bristol BS8 1TN, UK;2. Toulouse School of Economics, Manufacture des Tabacs, 21 allée de Brienne, 31015 Toulouse Cedex 6, France;3. Department of Economics, University College London, Drayton House, 30 Gordon Street, London WC1H 0AX, UK;4. Institute for Fiscal Studies, London, UK;5. Sciences Po, Paris, France |
| |
Abstract: | This study applies the hedonic pricing model to examine important attributes influencing average customer meal prices in restaurants in Seoul, Korea. Data from 185 restaurants were collected via Internet, phone interviews, site inspections, and ZAGAT Survey, and analyzed using OLS regression. The log-linear model was found to be most suitable for the data, and the proposed hedonic model accounted for as much as 73.7% of the variation in meal prices. The results indicate that food quality and décor were important determinants of restaurants’ average meal prices while service was not. Furthermore, the study found that a restaurant's location within the building (1st floor), the types of cuisine served (Japanese and Italian), parking facilities, private dining settings, franchising, and the number of blogger reviews (e-WOM) have significant effects on restaurants’ average meal prices. The model will provide useful information for restaurateurs in deciding effective menu pricing strategies. |
| |
Keywords: | Hedonic pricing model Restaurant meal price Electronic word-of-mouth (e-WOM) ZAGAT Survey |
本文献已被 ScienceDirect 等数据库收录! |
|